RPC (NYSE:RES) Releases Quarterly Earnings Results, Beats Estimates By $0.04 EPS

RPC (NYSE:RES) issued its earnings results on Thursday. The oil and gas company reported $0.08 EPS for the quarter, topping analysts’ consensus estimates of $0.04 by $0.04, Zacks reports. RPC had a return on equity of 4.82% and a net margin of 1.20%.During the same period in the prior year, the business earned $0.08 EPS. The firm’s revenue for the quarter was up 9.5% compared to the same quarter last year.

Here are the key takeaways from RPC’s conference call:

• Second-quarter results improved sequentially: Revenue rose 1% to $461 million, while adjusted EBITDA increased to $66 million from $53.5 million and adjusted EBITDA margin expanded 250 basis points to 14.3%, supported by better job mix, modest pricing gains and operating leverage.
• RPC’s differentiated technology businesses showed momentum, with ThruTubing Solutions revenue up 10% and Cudd Pressure Control revenue up 8%; MetalMax, UnPlug and longer-lateral applications are expanding the addressable market for downhole tools.
• The company is accelerating targeted coiled-tubing investments, expecting three 2 7/8-inch-capable units by year-end, while maintaining a strong liquidity position with approximately $180 million of cash, only $30 million of notes payable and no revolver borrowings.
• Industry activity remains subdued and management does not expect a significant near-term improvement; wireline revenue fell 16% sequentially amid customer activity reductions and aggressive competitor pricing, while pressure pumping revenue declined 1% and no fleets are planned for reactivation at current market levels.
• CEO Ben Palmer plans to retire and leave the board by the end of 2026, with a successor search expected to conclude before year-end; Palmer will remain in an advisory role to support the transition.

RPC Trading Up 4.8%

RPC stock traded up $0.24 during midday trading on Thursday, hitting $5.37. 871,034 shares of the stock were exchanged, compared to its average volume of 2,133,640. The company has a current ratio of 3.13, a quick ratio of 2.61 and a debt-to-equity ratio of 0.03. The stock’s 50-day simple moving average is $6.27 and its 200 day simple moving average is $6.48. RPC has a fifty-two week low of $4.18 and a fifty-two week high of $8.16. The stock has a market capitalization of $1.19 billion, a price-to-earnings ratio of 59.72 and a beta of 0.64.

Wall Street Analyst Weigh In

RES has been the subject of several analyst reports. Susquehanna decreased their target price on shares of RPC from $7.50 to $6.00 and set a “neutral” rating for the company in a research note on Wednesday, July 8th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of RPC in a report on Friday, July 10th. Three equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Reduce” and a consensus target price of $5.33.

Institutional Trading of RPC

A number of hedge funds and other institutional investors have recently modified their holdings of RES. Virtu Financial LLC acquired a new position in RPC during the fourth quarter worth $100,000. Invesco Ltd. grew its stake in shares of RPC by 0.5% in the fourth quarter. Invesco Ltd. now owns 1,086,721 shares of the oil and gas company’s stock valued at $5,912,000 after buying an additional 5,211 shares in the last quarter. Mercer Global Advisors Inc. ADV raised its holdings in shares of RPC by 52.1% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 23,125 shares of the oil and gas company’s stock valued at $126,000 after buying an additional 7,918 shares during the period. Vident Advisory LLC purchased a new stake in shares of RPC in the 4th quarter valued at $601,000. Finally, Empowered Funds LLC lifted its stake in RPC by 3.5% during the 4th quarter. Empowered Funds LLC now owns 1,053,024 shares of the oil and gas company’s stock worth $5,728,000 after acquiring an additional 35,975 shares in the last quarter. 41.06% of the stock is owned by institutional investors and hedge funds.

RPC Company Profile

RPC, Inc (NYSE: RES) provides essential equipment and services to companies engaged in the exploration, production and maintenance of oil and natural gas wells. The firm operates as an equity interest holding company, partnering with a network of independent service businesses to deliver a comprehensive suite of offerings for well completion and production operations.

Through its affiliated service companies, RPC offers pressure pumping and fracturing services, coiled tubing and nitrogen pumping, downhole tools and telemetry solutions, well intervention and workover services, along with rental tools and supply-chain logistics.